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Alaska's Upcoming Mileage Plan Devaluation for AA Redemptions

July 06, 2017
•
6 min read
AA new 777-200 retrofit (JT Genter photo)
Alaska's Upcoming Mileage Plan Devaluation for AA Redemptions
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This morning, we found out that American Airlines and Alaska Airlines are taking a step back from their partnership. Effective January 1, 2018, AA and Alaska elites will no longer get elite benefits on each other's flights. And, you'll no longer be able to earn award and elite miles on the other airline's flight numbers.

But, something else is also happening on January 1 — Alaska's changing Mileage Plan award rates on AA flights. While the changes aren't all bad, it's certainly a notable devaluation. Thankfully, the changes are just limited to AA redemptions, and, unlike past Alaska Mileage Plan changes, we have almost six months advance notice before these changes go into effect.

Prices going up / awards to book before December 31

There are 16 award categories that will see an increase. Most are modest (13-38%), but first class AA flights to Asia Zone 2 (including Hong Kong and China) are jumping a whopping 63%.

Travel between Continental US or Canada and:Award typeBook by

December 31, 2017		Book on or after

January 1, 2018		% Increase
Asia Zone 2
First Class
67,500
110,000
63%
South America Zone 1
First Class
40,000
55,000
38%
South America Zone 2
First Class
62,500
85,000
36%
Europe
First Class
62,500
85,000
36%
Caribbean
First Class
40,000
52,500^
31%
Mexico
First Class
40,000
52,500^
31%
Central America
First Class
40,000
52,500*
31%
Asia Zone 1
First Class
62,500
80,000
28%
Asia Zone 2
Business/First Class
55,000
70,000
27%
Asia Zone 1
Business/First Class
50,000
60,000
20%
South America Zone 2
Business/First Class
50,000
57,500
15%
Europe
Business/First Class
50,000
57,500
15%
South America Zone 1
Coach
17,500
20,000
14%
Europe (Off-peak)
Coach
20,000
22,500
13%
Asia Zone 1
Coach
32,500
35,000
8%
Asia Zone 2
Coach
35,000
37,500^
7%

^ indicates that the new rate is higher than the mileage required using AAdvantage miles.

* indicates that the new rate is lower than the AAdvantage rate.

Otherwise, the new rates are the same as current AAdvantage rates.

In case you need a refresher on zones, Alaska includes the following descriptions:

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  • American's Business/First Class award is for first class on a two-cabin aircraft or business class on a three-cabin aircraft. The first class award is for first class in a three-cabin aircraft.
  • Asia Zone 1 awards include Japan, Korea and Mongolia. All other Asia travel is considered Zone 2.
  • South America Zone 2 includes Argentina, Brazil (excluding Manaus), Chile, Paraguay, Uruguay, and Venezuela. All other South America travel is considered Zone 1.

In addition, Mileage Plan is slashing off-peak awards to Central America, South America, and Asia. In addition, off-peak awards for Europe will only be valid for travel from November 1 to December 14 and January 10 to March 14, instead of the current range of October 15 to May 15.

Specifically, here are some awards you might want to try to book by December 31:

Prices going down / awards to book after January 1

In addition, there are five regions where award prices are going down:

Travel between Continental US or Canada and:Award typeBook by

December 31, 2017		Book on or after

January 1, 2018		% Decrease
Continental US/Canada
Business/First Class
32,500
25,000
23%
Hawaii
Business/First Class
47,500
40,000
16%
Caribbean
Business/First Class
30,000
27,500^
8%
Mexico
Business/First Class
30,000
27,500^
8%
Central America
Business/First Class
30,000
27,500^
8%

Although Caribbean, Mexico and Central America rates are dropping from 30,000 to 27,500, this new rate is still more than you'd pay using AAdvantage miles (25,000).

Bottom Line

It's a bummer that many Mileage Plan awards on American Airlines flights are jumping. But, in many ways, this devaluation is finally just aligning Mileage Plan rates with American Airlines' devaluation in March 2016. So, one way of thinking about these changes is to be appreciative that these "zombie" rates will have stuck around for over 21 months by the time they're finally nixed.

For the next six months, it's time to set your Expert Flyer award alerts for American Airlines flights — especially for flights to Hong Kong (HKG) where the rates are jumping drastically.

Featured image by JT Genter

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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
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  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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